Question 1

Can I act as my own general contractor on a construction loan in Plymouth?

Accepted Answer

Most lenders require licensed contractors. Hard money lenders accept owner-builders but charge 2-3% higher rates and require construction experience documentation.

Question 2

How do construction loan draws work during the build?

Accepted Answer

Lenders release funds in stages after inspecting completed work. Typical draws occur at foundation, framing, rough-in, drywall, and completion milestones.

Question 3

What happens if construction costs exceed my loan amount?

Accepted Answer

You fund overages out of pocket. Lenders won't increase loans mid-project. Budget contingency reserves from day one to avoid stopped construction.

Question 4

Do construction loans require two closings?

Accepted Answer

Construction-to-permanent loans close once and convert to your mortgage at completion. Traditional construction loans require refinancing after the build, doubling closing costs.

Question 5

Can I finance a lot purchase and build together in Plymouth?

Accepted Answer

Yes. Single-close construction loans cover land acquisition and build costs in one loan. You need 20% down on the combined amount.

Construction Loans in Plymouth: Ground-Up Financing for Custom Builds and Major Renovations